EconomyEnergy
News 13 of 20

Domestic LPG Price Hiked to ₹942/Cylinder as OMCs Absorb ₹700 Under-recovery Amid West Asia Crisis

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
06 Jun 2026
~2 min
Source: Indian Express
Key Data:₹942 per cylinder₹700 under-recovery₹60,000 crore FY26 under-recovery10.6 crore PMUY households$790 per tonne Saudi CP90% imports via Strait of Hormuz
Bodies:Ministry of Petroleum and Natural GasIndian OilBharat PetroleumHindustan Petroleum
Practice MCQs from today's news ▸
What This Article Covers

1.Domestic LPG price increased by ₹29 to ₹942 per 14.2-kg cylinder, but OMCs still incur an under-recovery of ₹700 per cylinder as the market-linked price exceeds ₹1,600.

2.The cumulative under-recovery on LPG in FY26 was ₹60,000 crore, up from ₹41,338 crore in FY25, with the government providing ₹30,000 crore in budgetary support.

3.The West Asia crisis has disrupted 90% of India's LPG imports via the Strait of Hormuz, spiking the Saudi Contract Price by 46% and forcing demand management measures.

The Big Picture
Prelims · HighMains · Medium

Despite a price hike, domestic LPG remains heavily subsidized, with Oil Marketing Companies (OMCs) absorbing an under-recovery of ₹700 per cylinder due to soaring international prices triggered by the West Asia crisis. This highlights the government's continued price modulation to shield over 33 crore households, including 10.6 crore PMUY beneficiaries, from global price shocks, at a significant fiscal cost.

Exam Lens

Quick Exam Facts From News

New Domestic LPG Price (Delhi)₹942 per 14.2-kg cylinder
Under-recovery per Cylinder₹700
Market-Linked PriceOver ₹1,600 per cylinder
FY26 LPG Under-recovery₹60,000 crore
PMUY Beneficiary Count10.6 crore households
International Benchmark (Saudi CP)$790 per tonne (June 2026)

1-Minute Revision

  • ›New Domestic LPG Price (Delhi): ₹942 per 14.2-kg cylinder
  • ›Under-recovery per Cylinder: ₹700
  • ›Target this Data: ₹700 under-recovery per domestic LPG cylinder (June 2026).
  • ›Target this Nodal Body: Ministry of Petroleum and Natural Gas.
  • ›Target this Legal Point: The concept of 'Under-recovery' vs. 'Subsidy'.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Pradhan Mantri Ujjwala Yojana (PMUY), mentioned in the context of LPG subsidies, falls under the administrative control of which ministry?

Q2Statement-basedHard

Consider the following statements regarding the news on LPG pricing:

1. The price of a domestic LPG cylinder for households is revised automatically every month based on an international benchmark.

2. The under-recovery on domestic LPG sales is fully borne by the government with no contribution from Oil Marketing Companies.

3. The disruption in the Strait of Hormuz has impacted nearly 90% of India's LPG imports.

Which of the statements given above is/are correct?

Q3Data-centricMedium

As per the article, what is the approximate under-recovery being incurred by Oil Marketing Companies (OMCs) on each domestic LPG cylinder after the recent price hike?

Q4Application/ImpactMedium

What is the primary reason cited by the government for continuing to modulate domestic LPG prices despite high international costs?

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